Accounts Receivable

[Kevin Z.]

I am a new small buisness owner trying to use accounting express 2009.
AMATURE HOUR please help!

I started my checking account in accounting express with a balance of
$1000.00. I don't understand why everytime I create an invoice my accounts
receivable goes up and my checking account balance goes down. Shouldn't my
checking account balance stay the same?

I understand why the accounts receivable goes up but do not understand why
the checking balance goes down. Will it catch up once I deposit payments? Any
advice or knowledge sharing helps.

Thanks,
Kevin

 

[tango91a]

Check the ITEM set-up. You might have selected the checking account as the
income account. Thus, any invoice created will reduce the checking account.
It has to do with debits and credits. Change the income account in the ITEM
set-up to a revenue account. This should fix the issue.

Hope this helps

 

[Kevin Z.]

Thank you,

I tried to change the account type but was unable to find out how. Under new
account I was able see the different account types available and did not see
one titled revenue. My checking account type is listed as a "bank" account
type.

Do you know how to edit the bank account type of an exhisting account.

Thanks,

Kevin Z.

 

[tango91a]

The account type you should be looking for is INCOME, and the account name
should be revenue or sales. If you do not have an income account, create a
new account with Account Type = INCOME, and name it whatever you choose.

You cannot change the Account Type once the account has been created.

To change the Income Account in the ITEM setup..
Open the ITEM
Change "Income Account" to the new income account created or an existing
income account that you want to use to track your sales/revenue.
Save and Close.


Hope this helps

 

[Kevin Z.]

I may have fixed it with your advice. Thank you so much. I am going to
monitor the balances for awhile after receiving some payments and making some
deposits. Your suggestion changed my balance right away but the balance is
still off slightly. I am going to monitor it may be held in the sales tax.

I was lost without your help. Thank you. Thank you. Thank you.

Kevin Z.